The Best Rental Property Income Calculator for 2023

Abstract

Table of Contents How Much Income Should a Rental Property Generate? How Mashvisor's Rental Property Income Calculator Can Help You Conclusion How do you expect to make any profit if you do not measure it? As a real estate investor, one thing you must avoid is failing to calculate the estimated income your rental property will generate. How Much Income Should a Rental Property Generate? The income a traditional rental property should generate largely depends on the type of rental property. The average rate of return for a commercial rental property in the US is 9.5%, and for residential rental property is 10.6%. That being said, regardless of the type of rental property, the average rate of return for any rental property in the United States is 8.6%. Furthermore, there is no exact figure for how much income a traditional rental property should generate. Prices of similar properties in the area Before you put a price on your rental property, you can check out Mashvisor's Property Search tool and use its Rental Comps & Insights feature to find out how much homes in your neighborhood cost. Examples of one-time startup costs include: Property inspection costs Ads for renters to find motivated sellers Legal and other professional fees Repairs Closing costs Property inspection costs Ads for renters to find motivated sellers Legal and other professional fees Repairs Closing costs Monthly Expenses Monthly expenses are costs that come with owning a rental property. If the payback balance of the property is $30,000 after three years, it means that the property will have generated an income of $30,000 during the said period. Below are the metrics used to calculate the investment payback balance on a property: Adjusted gross revenue Total expenses Net rent Property tax Cash flow Startup costs Adjusted gross revenue Total expenses Net rent Property tax Cash flow Startup costs Mashvisor's Investment Payback Balance table shows the amount of money you gained or up to the point of time that you're looking at.